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Wall Street spooked by ‘zombie inflation’

Economists were unpleasantly surprised by the persistence of inflation, which also shocked Fed members: The core personal consumer spending index, excluding volatile food and energy, accelerated the pace of growth, erasing progress over the previous six months.

All this has pushed back the expected rate cut and even caused some alarmist analysts to assume that the US will again experience a surge in high inflation, which means that a new Fed rate hike is just around the corner.

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